REPORT

A COMMITMENT TO EXCELLENCE

TORONTO TRANSIT COMMISSION TABLE 0 F CONTENTS

Letter from the Commission 2

Letter from TTC Management 3

A Commitment to Excellence 4

Serving the Public 6

Operating and Maintaining 10 the System

Planning for the Future 12

Financial Overview 14

Revenue 16

Expenses 17

Expenses by Function 18

Capital Expenditures 19

Financing 20

Financial Statements December 31, 1986 21 Statement of Revenue and Expenses 21

Balance Sheet 22

Cover: Driver Bill Gorry. a 16-year Statement of Changes 23 veteran with the TTC. in Financial Position

Notes to Financial Statements 24

10-Year Financial and Operating Statistics 26

TTC Management Directory 28 LETTER FROM THE COMMISSION

o: Mr. Dennis Flynn, (Presidents' Conference Committee) cars, Chairman, and Councillors of the Municipal­ which have served our patrons well for many ity of Metropolitan years. One hundred and twenty-six new air­ conditioned subway cars will also enter ser­ vice in 1987 and 1988. These new vehicles represent the TTC's commitment to constant LADIES AND GENTLEMEN: renewal of the system to ensure the highest Julian Porter, QC I am proud to present the 1986 Annual standards of service and safety. !Chairman) Report of the Toronto Transit Commission. Throughout its 65-year history the TTC has It has been an award-winning year. The always been able to blend the best of the past TTC's years of planning, building, operating with the technology of the present and the and maintaining the system to provide the ideas of the future. This past is prologue to a best possible service to riders were rewarded challenging future that will call upon the with five major honours, including the Out­ TTC's considerable experience as important standing Achievement Award given by the decisions approach on transportation priori­ American Public Transit Association. ties and projects. Meeting those challenges Jeffery S. Lyons, QC The industry's highest honour for excel­ will require a continued spirit of co-operation (Vice-Chairman) lence in all aspects of public transit planning, with Metro's municipal neighbours in order to operations, maintenance, and safety reaf­ maintain the quality of transit service that has firmed the TTC's long-standing conviction contributed to healthy economic growth and that large numbers of people will choose to high quality of life in the Metro Toronto ride public transit when safe, clean, reliable region . and reasonably priced service is made avail­ Finally, after ten exciting and productive able. years on the Commission, eight of them as Recognition of the TTC's history of excel­ chairman, the time has come for a personal Dr. Gordon J. Chong lence was also extended by the business farewell. It has been a pleasure and a privilege community when The Financial Post to work with the Commission and its included the TTC in its best-selling book The employees, and I wish to thank Metropolitan 100 Best Companies to Work for in Canada. Toronto Council for giving me the opportu­ These accolades would not have been won nity to serve. Without your support and without the confidence of the public, who assistance the TTC would not have been able rode the TTC to another annual ridership to meet the needs of the record, the dedication of our employees and community and gain its richly deserved repu­ continued support from Metropolitan tation as one of the finest public transit C. Dennis Flynn Toronto Council and the Province of . systems in the world . This support was again evident in 1986 when I have enjoyed every minute of my associa­ Metro Council voted its approval of the tion with the wonderful employees of this Sheppard Avenue subway, the first stage of great family and I look forward to many years the rapid transit master plan of wonderful talks with drivers, collectors and to meet Metro's transit needs into the 21st inspectors. century. In 1986 the TTC was also proud to celebrate 125 years of continuous streetcar service in Tom R. Jakobek Toronto, a tradition assured of enduring into a third century as we await the delivery of 52 new articulated streetcars in 1987 and 1988. The new generation of vehicles will replace J ulian Porter the TTC's venerable "Red Rocket" PCC Chairman

2 LETTER FROM TTC MANAGEMENT

am pleased to report that in 1986 the TTC set yet another ridership record , carrying 441,012 ,000 passengers. This increase of 8.9 million riders over the previous year exceeded our forecast by 4 million. With a January fare change, budgeted to increase the average fare by 6.8 per cent, the TTC was again able to exceed its target of obtaining 68 per cent of operating expenses from revenues. With revenues meeting 69.5 per cent of operating costs, the TTC was able to reduce by $6.6 million the budgeted level of financial support needed from Metropolitan Toronto and Ontario taxpayers. This level of funding enabled the TTC to provide 189.6 million kilometres (117.8 million miles) of service during 1986, a 3.7-million­ kilometre (2.3-million-mile) increase. Much of the increased patronage throughout 1986 can be attributed to a robust economy in Metro' Toronto and recognition of the TTC's good value and service to our riders for the cost of their fares. This buoyant ridership is creating a con­ cern that the system is reaching the limits of its Financial support from the Metropolitan OFFICERS AND SENIOR OFFICIALS capacity to move people efficiently. To meet Toronto government and the Province of (left to right) steadily increasing ridership and vehicle Ontario continues to be an important element Standing replacement requirements, the TTC entered in the successful operation of the system. Over into two contracts in 1983 and 1984 with the Norman E. Balfour, DC the years the TTC has been fortunate, as well, General Counsel Urban Transportation Development Corpora­ in enjoying political support in recognition of Arnold S. Dube tion (UTDC) to purchase 52 articulated street­ the benefits to the community of a safe and General Manager, Administration cars and 126 air-conditioned subway vehicles efficient transit system. Alfred H. Savage at a total cost of approximately $270 million, After six challenging and rewarding years Chief General Manager but delivery of these vehicles has been delayed William L. Verrier this annual report marks my last year as chief President and Chief Executive Officer by almost two years. Our riders have been general manager of the TTC. I would like to Lines, Limited patient with ageing vehicles, but their pa­ thank the members of the Commission and Donald J. Morton tience is being taxed as breakdowns increase, Metro Council for their support during my General Manager, causing delays and necessitating more fre­ time here, and I would like to express special Engineering and Construction quent repairs. Lloyd G. Berney thanks to the 10,000 men and women of the General Manager, Operations Total revenues rose by 11 per cent to $334.8 TTC, who demonstrate the spirit of excellence million in 1986, from $301.6 million in 1985. at their jobs every day. Seated With the addition of the operating subsidy of Gordon M. Break $126.1 million, the TTC's total revenue and General Manager, Human Resources operating subsidy amounted to $461.0 million, Dr. Juri Pill an increase of $34.0 million over the previous General Manager, Planning year. Capital spending for 1986 totalled $168.3 David C. Phillips General Secretary million, down by 11 per cent from $188 .5 Alfred H. Savage J. Herb Jobb million in 1985. Chief General Manager General Manager, Finance

3 A COMMITMENT TO EXCELLENCE

HIGHLIGHTS OF THE YEAR xcellence is a tradi­ security message to the public at large." The tion at the Toronto Transit Commission. For TTC's ongoing Public Education Programme decades the TTC has been recognized by its was nominated for this award by the In 1986 the ne became the first Canadian transit authority to peers as one of the finest and safest public Metropolitan Toronto Police. receive the APTA Outstanding transit systems in North America. In 1986 the In 1986, 3,303 operators, 79 per cent of the Achievement Award. the industry's American Public Transit Association (APTA) TTC's drivers and operators, received safe highest honour for excellence in all recognized the TTC with its highest honour, driving certificates from the Commission. At aspects of public transportation. the Public Transportation System Outstand­ the TTC's 23rd Annual Safe Drivers Lun­ The ne won the 1986 APTA Silver ing Achievement Award. As the first Cana­ cheons, three operators were honoured for 30 Award for the best traffic safety dian transit authority to receive this presti­ years or more of accident-free driving and the record in North America for the gious award, the TTC was cited for sound 20-year group numbered 145 . The 10-year safe 17th time in the past 20 years. management and operating practices, far­ driving plateau was reached by 1,140 drivers, sighted planning and a tradition of continuing and an additional 2,165 operators were pre­ ne drivers achieved the lowest accident rate in ne history with innovation. sented with special certificates marking one to only 2.98 incidents per 160 ,000 km nine years of safe driving. 1100.000 mi.) of operation in 1986. EXCELLENCE MEANS SAFETY The TTC is also one of the safest places to Serving riders successfully means serving work in the province of Ontario. In 1986, In 1986. ne buses. streetcars and them safely. In 1986, TTC operators recorded lost-time injuries decreased by 14 per cent over trolley coaches were invol ve d in their lowest accident rate in the TTC's history only one accident for every 49,2 70 the previous year, a level 42 per cent lower km 130,794 mi.) of operation. with fewer than three incidents per 160,000 than the Ontario average, as calculated by the km (100,000 mi.) operated. This record was Industrial Accident Prevention Association. The ne won awards for the best again the best passenger and traffic safety traffic safety record. the lowest record among transit systems serving North A WORLD-WIDE REPUTATION accident rate and the best industrial American cities with I million or more people. safety record among major Cana· The TTC offers the benefits of its experience dian transit systems in 1986. For this achievement the TTC was awarded and expertise around the world through its the industry's highest safety honour, the Silver consulting subsidiary, Toronto Transit Con­ More than 3,000 vehicle operators, Award of the APTA. It was the 17th time in sultants Ltd. (TTCL). Drawing upon TTC 79 per cent of the nc·s drivers, the past 20 years the TTC has been honoured management, technical and operating staff, received safe driving certificates in with this award. The APTA also recognized TTCL provides consulting services in all areas 1986. Three operators were hon· oured for 30 years or more of the late Leonard Bardsley's creative solutions of public transit to government authorities, accident -free service . to transit challenges during his 35-year TTC agencies and private concerns. career by electing him to its Hall of Fame. TTCL was engaged in a number of projects Other honours included three Canadian in the United States and overseas during 1986. Urban Transit Association (CUTA) safety In the U.S. , the company was involved in awards. Competing with Canadian systems assignments in Los Angeles, Pittsburgh and operating more than 10 million kilometres (6.2 Washington, D.C. Projects were also under million miles) of service annually, the TTC way in several world capitals, including An­ won awards for the best traffic safety record in kara, Turkey; Bangkok, Thailand; Kuala Lum­ Canada, with a rate of only 11.7 accidents per pur, Malaysia; and Mexico City; TTCL was million kilometres operated; for the lowest also at work in a second Turkish city, Bursa. accident rate, just 1.6 accidents per million In addition to direct consulting activities, passengers carried; and for the best industrial TTCL organized and held two international safety record, 25 .3 accidents for every million symposia in 1986. Engineers, consultants and employee-hours worked. transit officials convened in Toronto to dis­ These honours were complemented by a cuss advanced techniques and developments Crime Prevention Award from the Ontario in soft-ground tunnelling and the successful Solicitor General honouring the TTC as "an integration of large-scale urban development innovator in communicating the safety and and public transit facilities.

4 VEHICLE REPAIRMAN George Duncan, emergency repairmen HarrJ' Higgins and Steve Sziraki and lead hand carhouse operator Jim Abreu bring more than 61 years' experience to the task of keeping the TTC streetcar fleet running smoothl)z

5 SERVING THE PUBLIC

HIGHLIGHTS OF THE YEAR erving the rider is the took a $1.5-million winterization programme. TTC's first order of business. To keep pace Additional heating cables were installed to The TTC added 6.8 km (4 .3 mi.} of with ever-changing transportation needs keep drainways on the elevated guideway free route in 1986 with the creation of throughout Metro Toronto, the route net­ of ice, and power rails on the at-grade section one new route and one new express work was extended by an additional 6.8 km of the line were equipped with a second service and extensions to seven (4.3 mi.), bringing it to 1345.0 km (835.8 mi.). coverboard, to prevent ice and freezing rain other routes. During the year a new bus route was created from impeding electrical contact. In addition, A $1.5-million winterization pro· on Gerrard Street East to connect subway a number of track switches were re-equipped gramme was undertaken to improve stations at Main Street and Warden Avenue; with improved electric heaters to prevent ice cold-weather performance on the eight existing bus routes were extended or buildup, which causes delays to rush-period high·tech Scarborough RT line. modified, and one new branch was introduced service when heavy demand makes reliability on a route already in service. A new rush-hour essential. The TTC's 10-year, $50-million sub· way station modernization pro· express service was introduced to connect Major improvements at Wellesley and gramme continued with extensive subway station and Rouge Hill GO Eglinton stations continued the TTC's 10-year, renovations completed at 'ltellesley station in Scarborough. Additional hours of $50-million upgrading programme to the and Eglinton stations on the Yonge operation were also introduced on five other 1954-vintage stations on the original 7.4-km line. bus routes during the year. Extensions to six (4.6-mi.) section of the Yonge subway line. New shops and services available routes and five restructurings were recom­ Wellesley was made more attractive to the to subway riders include Canadian mended, with four of these route extensions thousands of patrons who pass through it each Imperial Bank of Commerce Instant implemented towards the end of the year. The day with new wall tiles, additional doors to Teller machines in 16 subway remaining recommendations will be intro­ aid passenger flow, new collector booths, stations. duced early in 1987. These route and service improved lighting and signage and a sound­ Wheei·Trans provided 43,000 more extensions contributed to an additional 3.7 inhibiting aluminum-slat ceiling. At Eglinton rides in 1986 than in the previous million km (2 .3 million mi.) of service provided station support columns were covered with year, an increase of 8.9 per cent to the public in 1986. stainless steel cladding and red mosaic tiles, from 1985 and over 100,000 more and new ceilings were installed. Much of this than in 1984. GROWING RIDERSHIP station's original appearance was retained by As service and ridership grew, so sales of the Wheei·Trans had more than 15,000 keeping the rare grey vitrolite glass wall registered users across Metro TTC's monthly Adult Metropass continued to panels, as requested by the City of Toronto Toronto at the end of 1986, a far climb throughout the year, reaching a new and the Toronto Historical Board. New public cry from the 46 riders listed when high of 127,700 in the month of November. address equipment was also installed in both Wheel· Trans began as a pilot project The very high Metropass usage helped rider­ stations. in 1975. ship to exceed 1.5 million rides on 79 days, including one day with a single-day ridership SYSTEM IMPROVEMENTS The TTC approved the purchase of 32 more specially designed state-of · record of 1.65 million and six other days when Modernization of the St. Clair and Summer­ the·art Orion 11 vehicles for Wheel · the TIC carried more than 1.6 million passen­ hill subway stations also began towards the Trans service, at a cost of $4.25 gers. These ridership increases represent pub­ end of the year. Among the improvements million. lic confidence in the system confirmed by the planned are new wall tiles, sound-deadened highest per-capita ridership in North America, ceilings, improved public address systems and equivalent to more than 200 rides a year for additional windows. At the busy St. Clair every resident of Metro Toronto, and by station a third escalator will be added on the continuing upward trends in measures of southbound platform, and new skylights passenger satisfaction. above two stairwells will provide a brighter, Service in the second year of operation on more open aspect. the automated Scarborough RT line was Another significant improvement to the greatly improved, attracting an average of system made in 1986 is now benefiting approx­ 30,000 riders a day. Following a review of the imately 18,000 TTC passengers a day who use first full winter of operation, the TTC under- four bus and streetcar lines terminating at the

6 TERRY NOONAN, the TTC's first female inspector, started her career as an operator. Rain or shine, she keeps streetcars on schedule along the downtown King (504) route.

7 west-end Humber loop. The waiting shelter for the subway fleet is under way to provide that serves these riders was upgraded with an relief from the audio difficulties imposed by a attractive new copper roof, a more effective highly variable acoustic environment that electric heating system, improved indoor and includes noise from moving trains, large num­ outdoor lighting and new safety windows and bers of people and varying operator voice floor tiles. levels. Bus and streetcar riders will soon be able to INl'ORMING RIDERS learn the scheduled arrival time of the next Keeping riders informed about TTC policies vehicle on their route by telephoning a special and services is essential to serving them TIMELINE number displayed on each TTC effectively. To this end the Commission pro­ stop post. In a three-year test programme duces a variety of consumer information approved in 1986, the computerized automatic materials, including approximately l million telephone information system will provide copies each of the TTC Ride Guide system schedule information for approximately 9,000 map, pocket timetables and the monthly take­ transit stops on surface routes system-wide. one pamphlet Rider News. In addition, the TIMEUNE's 24-hour. delay-free answering popular system-wide poster campaigns, "Our capability will benefit thousands of customers Riders Write" and "We Want You to Know who currently may receive busy signals or More About continued to highlight some have to hold for an available operator when prominent concerns of TTC patrons. includ­ phoning for transit route schedule informa­ ing littering, food consumption and vehicles tion. By handling up to 10 million simple turning short of their destinations. schedule and/or status enquiries annually, The second phase of the TTC's retail leasing TIMELINE will give the TTC's Telephone programme was approved to proceed towards Information staff, who answer an average of the goal of providing approximately 3,700 6,500 service enquiries every day of the year, square metres (40,000 square feet) of retail more time to respond to trip routing calls space in nearly 40 subway stations. Among needing detailed answers. the shops and services available to subway riders in 1986 were florists, shoe repair, dry WHEEL-TRANS cleaning and photo processing establishments Wheei-Trans, the TTC's and Metro Toronto's and automatic banking machines located in 16 specialized transit service for disabled riders, stations. Once all locations are leased the TTC again showed a dramatic increase in annual anticipates a net annual return of approxi­ ridership. Over 526,000 rides were provided in mately $5 million. 1986, an increase of 43,000, 8.9 per cent more Planning was completed and approval than in 1985 despite a two-week strike by gained in 1986 for the TTC's new Metro-wide drivers. At year-end there were more than all-night service grid. When the Blue Night 15,000 registered users of this door-to-door Network is introduced early in 1987, 86 per service. However, demand continued to grow cent of Metro Toronto's 2.2 million people will faster than the capacity of Wheel-Trans to be within a 15-minute walk of all-night bus and provide service. To meet a planned 15-per-cent streetcar routes. Some 22 routes will operate expansion in service hours for 1987 and reduce between the hours of 1:00 a.m. and 5:30a.m., the required advance booking time by approx­ in the first major expansion to the TTC's imately 40 per cent, the Commission ap­ all-night service grid in over 60 years. proved the purchase of 32 more Orion H A long-standing complaint of TTC subway vehicles for Wheei-Trans. When these buses riders has been the poor sound quality of the are delivered in 1987 Wheel-Trans will have 62 on-train public address system. Research and of these specially designed Canadian vehicles development of a new public address system in service.

B NENITA BABARAN (seated) and Pam McCombe monitor operating costs and analyse ridership. Their information helps the budget for services needed to meet growing ridership.

9 OPE ATING AND MAINTAINING

THE SYSTEM

HIGHLIGHTS OF THE YEAR he highlights of oper­ challenges the crews of the Way Division with ating and maintaining a public transit system stringent time constraints. Working during that carried more than 440 million people in the few hours available each night when the The TTC took de~very in 1986 of 1986 included taking delivery of 75 new 12-m subway is closed, they repaired or replaced 75 new 12 -m buses. An additional 70 12-m buses were ordered for (40-ft) diesel buses and placing two major over 6,800 m (22,365 ft) of track throughout delivery in 1987 at a cost of $13.4 vehicle orders, including the first-ever pur­ the 54.4-km (33 .8-mi.) system. million. chase by the TTC of articulated buses. To meet fast-growing ridership on several DESIGNING AND REBUILDING VEHICLES The TTC ordered 90 articulated heavily travelled surface routes, the TTC A unique special-purpose, gantry crane buses in 1986 at a cost of $29 maintenance vehicle also made its debut in miNion. Thirty of the bendable vehi­ placed an order with Ontario Bus Industries cles wiN be delivered in each of for 90 articulated Orion-Ikarus buses at a cost 1986. Designed by the TTC and manufactured 1987, 1988 and 1989. of approximately $29 million. These 18-m to order, the 22.8-m (75-ft) vehicle is used to (60-ft) vehicles can carry approximately 50 replace 6.5-m (20-ft), 9-t (10-t) concrete sup­ TTC crews renewed nearly 4.4 km per cent more passengers than standard 12-m port beams on the Prince Edward Viaduct, 12.7 mi.l of streetcar track and which carries the subway high across the Don more than 6.8 km 14.2 mi.l of (40-ft) buses and will prove valuable on subway track in 1986. high-density routes. Thirty of the diesel-pow­ Valley. Previously an overhead crane assem­ ered vehicles are scheduled to be delivered in bly had been used , suspended from the steel­ A special TTC -designed gantry each of 1987, 1988 and 1989. work below the road deck. This crane required crane vehicle is now in service to The TTC's second major bus order for 1987 six weeks to install and another six weeks to replace massive concrete beams on dismantle each time it was moved to a new the Prince Edward Viaduct. which delivery was for 70 standard diesel buses. carries subway trains across the General Motors of Canada will supply 50 of location. Although the crane might span four Don Valley. these vehicles; New Flyer Industries of Win­ beams, only one might need replacement, a nipeg is to provide the remaining 20 buses. task taking three months. Following unsuc­ Among 181 suggestions submitted The total cost of this equipment purchase is cessful efforts to locate machinery able to by employees in 1986. one concern­ perform the job, TTC staff designed the ing an engine bypass filter on diesel approximately $13.4 million. buses will save the TTC approxi­ special-purpose vehicle. In the first year of mately $17,000 in the first year TROLLEY COACHES RETAINED operation, crews using the new car replaced and approximately $21 ,000 in sub ­ Trolley coaches were assured of a future in the six of the massive beams, saving time and re­ sequent years . TTC fleet when the Commission decided to ducing the cost of this vital and complex task. retain the electric-powered buses. The deci­ Rebuilding a 35-year-old PCC streetcar sion came after nearly a year of study and from the wheels up tested the TTC's work­ discussion about whether the extra costs shop skills and capabilities in 1986. This associated with trolley coach operation could project was undertaken to determine the be justified. Their quiet, pollution-free opera­ feasibility of rehabilitating selected PCC vehi­ tion was seen as an advantage on those routes cles with a view to extending their service lives that serve residential areas. The !50-vehicle by 10 years. The project was completed on trolley coach fleet operates over approxi­ time and under budget, and the car re-entered mately 55 .5 km (34.5 mi .) of routes on nine revenue service in September. lines. Engineering design work and site prepara­ In the six-month period available during the tion for a new 250-bus Arrow Road garage year for surface track work, the TTC's annual neared completion in 1986 with building con­ streetcar track renewal programme replaced struction expected to begin in 1987. Located in more than 4,370 m (14,300 ft) of track on the the city of North York, the new facility will 73.4-km (45.6-mi.) route network in 1986. enable the TTC to operate bus routes and Approximately 9,200 m (30,000 ft) of over­ maintain vehicles serving the north-west head trolley wire was also replaced on various quadrant of Metro in a more cost-effective routes throughout the system. manner. Completion of this, the TTC's 12th The subway, backbone of the TTC system, operating garage, is targeted for 1988.

1 0 STREETCAR OPERATORS (left to right) Nancy McCalfum, George Becker and Mary El!en Smith are three of the 9, 759 employees whose dedication and professionalism made the the most widely honoured transit system in North America in 1986.

11 PLA NING FOR THE FUTURE

HIGHLIGHTS OF THE YEAR he first step towards A new automatic entrance from the rapid transit system of the 21st century was will provide direct access to the lower-level Metro Toronto Council approved the taken in 1986 when Metro Toronto Council Bloor-Danforth line for approximately 12,000 7. 6-km 14.8-mi.) Sheppard Avenue voted in favour of building a new $664-million riders a day, allowing them to bypass crowds subway line as the first stage of east-west subway line across northern Metro on the mezzanine of the upper-level Yonge the TTC's NETWORK 2011 rapid transit master plan for the future. Toronto. The 7.6-km (4.8-mi.) Sheppard line and on connecting stairways. Each pas­ Avenue subway would be the first stage of senger platform on the Yonge line will be The $51.0-miUion Harbourfront Light NETWORK 2011, the TTC's 25-year, $2.7-bil­ widened by removing approximately 60 m Ra~ Transit line received approval lion rapid transit master plan unveiled in 1985. (200ft.) of the walls, and a second new station from Toronto City Council in 1986. Construction of the new line could start in entrance will be constructed from Hayden lt will be the first entirely new TTC streetcar line to be built in the city 1989 following examination of the project by Street, south of , as part of a new since the 1920s. the Ontario government, environmental and private development to be built above the social impact studies, engineering and land station. More than 100,000 persons a day acquisition. Progress continued in 1986 on a unique use the multi-level Bloor-Yonge sub ­ TTC engineering and construction challenge, way station. the major crossroads NEW HARBOURFRONT SERVICE of the TTC system, an increase of the new $19.9-million North York Centre 30.000 in the past three years. Streetcar service on the city's Lake Ontario subway station. The project required the waterfront moved closer to reality in 1986 station structure to be built around the exist­ To ease congestion at Bloor-Yonge with approval by Toronto City Council to ing Yonge Street subway line, which contin­ station, the multi-level fac~ity w~l build the Harbourfront Light Rail Transit ued to operate throughout the two-year con­ undergo an $8.9-million renovation (LR T) line. Construction of this streetcar line starting in the summer of 198 7. struction period. The TTC's 60th subway is expected to begin in 1987 and will take station, North York Centre will serve the A unique TTC engineering and con­ approximately two years to complete. The heart of a $250-million civic and commercial struction challenge: build a new $51.0-million Harbourfront LRT will operate complex in the city of North York when it subway station on an existing line from an underground turning loop in Union opens in mid-1987. without stopping service. The $20- Station, surfacing on Bay Street, then running million North York Centre station will open in the summer of 198 7 on along Queen's Quay on a private right of way COMPUTERS ON BOARD the Yonge line. to a turning loop at the south end of Spadina Following more than 10 years of design, A venue. As the first entirely new TTC street­ development and in-service testing on 250 Installation of the TTC's award­ car line to be built in the city of Toronto since buses at one TTC operating division, the winning Communications & Infor­ the 1920s, it will serve a unique area of the city, Commission received approval from Metro mation System ICIS) on the 2,000· vehicle surface fleet will begin in one that combines major cultural and recre­ Council to proceed with a $39.6-million sys­ 1987. ational attractions with extensive new resi­ tem-wide expansion of the computer-based dential development. Communications and Information System The TTC serves the most transit· Riders using the Bloor-Yonge station, the (CIS). The system uses special microproces­ oriented city in North America: TTC major crossroads of the subway system, will per-capita ridership is equivalent to sors, designed and developed by the TTC, more than 200 rides for every welcome substantial changes that are on the aboard vehicles to relay speed, location and resident of Metro Toronto. way to provide relieffrom rush-hour crowding passenger load information to a control cen­ that has become acute in the multi-level tre. Inspectors using video display consoles station. More than 100,000 riders a day enter, can track CIS-equipped vehicles and commu­ leave or change trains in the station, an nicate with operators to adjust service and increase of approximately 30,000 in the past correct schedule variations, bunching or over­ three years. To remedy the situation the TTC loading. Installation of the system is to begin has approved a four-year, $8.9-million renova­ in 1987 on the streetcar fleet and on buses tion programme to begin in 1987. Patrons will operating from the TTC's Malvern Division. benefit from two new entrances, wider plat­ The award-winning technology is expected to forms and the removal of wall sections to be aboard all 2,000 vehicles in the TTC improve access to platforms on the Yonge line. surface fleet by the early 1990s.

12 DRAFTING SUPERVISOR Dave Curlette, planner Mary Ann George and draftspersons Dave Sutherland and Lauri Morris work on plans for future transit. Says Curfette: "Some of the plans I've been involved with have become reality ... in a small way I feel I've contributed to the growth of the city."

13 FINANCIAL OVERVIEW

TIC FARES AT DECEMBER 31, 1986 Revenue Passengers Fares millions % Tokens Adult 5 for $4.00 126.2 28.6

Tickets Adult 5 for $4.00 42.1 9.5 2 for $1.90 7.3 1.7 Scholar 5 for $2.00 38.0 8.6 1986 REVENUE Senior Citizen 5 for $2.00 24.9 5.6 Total Revenue : $334,840,000 Child 4 for $1.00 12.1 2.7 0 Regular Service, Including Fare Grants $314,574,000 (93.9%) Cash • Charters and Special Services Adult $1.00 66.5 15.1 $2,257,000 (0 .7%) Scholar $0.60 10.9 2.5 • Rental Income Child $0.45 3.8 0.9 $7,138,000 (2.1%) Passes • Advertising Metro pass $41 .50 101.9 23.1 $6,002,000 (1.8%) Seniors' Pass $27.25 3.3 0.8 0 Other Income Family Pass $ 3.30 0.7 0.2 $4,869,000 (1.5%) Other Postal Contract 1.8 0.4 Blind and War Amputees 1.5 0.3 441.0 100.0

Note: The split of passengers and revenue by category is estimated on the basis of collection of tickets and tokens and a sample analysis of cash fares .

1986 EXPENSES Total Expenses: $460,980,000 • Wages, Salaries and Other Employee Costs $349.400,000 (75 .8%) 1111 Materials, Services and Supplies $50,304,000 (10.9%) 0 Electric Traction Power $17.412,000 (3.8%) 0 Automotive Fuel, Vehicle and Other licences $22,299,000 (4.8%) 0 Municipal Taxes $4,642,000 (1.0%) • Public Liability Costs $8,403,000 (1.8%) • Depreciation and Debenture Interest $8,520,000 (1.9%) 14 OPERATING RESULTS 500- Revenue increased to $334.8 million, primarily as a result of the 6.8% fare increase on January 2, a 2. 0% increase in ridership and a gain of $2.1 million on the sale of Parkdale Garage. Expenses 450- rose to $461.0 million because of wage increases aggregating 5. 7%, a 2. 0% increase in service operated and general inflation. Because revenue was higher than anticipated, operating subsidy increased by only 0.6%. 400-

Increase 350- 1986 1985 (Decrease) % • Revenue ($ millions) 334.8 301 .6 33.2 11.0 300- 0 Operating subsidy ($ millions) 126.2 125.4 0.8 0.6 Expenses ($ millions) 461.0 427.0 34.0 8.0 ~ 1985 1986 .j

PASSENGERS 450- Ridership increased to a record 441.0 million, mainly because of the improved economy in Metro Toronto evidenced by higher employment and retail trade. service improvements and 440- increased cross-boundary tra vel by non-Metro residents. The subsidy per passenger carried actually declined in 1986. 430- Increase 1986 1985 (Decrease) %' Passengers (millions) 441.0 432.2 8.8 2.0 420- Revenue per passenger 75.9C 69.8C 6.1C 8.7 410- Operating subsidy per passenger 28.6C 29.0C (0.4)C (1.4)

Expenses per passenger 104.5C 98.8C 5.7C 5.8 400- 1985 1986

MILES 122- Miles operated increased primarily because of improved bus and subway service and a full year's operation of the Scarborough RT line. 120-

Increase 118- 1986 1985 (Decrease) % Miles (millions) 118.2 115.9 2.3 2.0 116- Revenue per mile 283.2C 260.2C 23.0C 8.8 114- Operating subsidy per mile 106.8C 108.2C (1.41 e (1.3) Expenses per mile 390.0C 368.4C 21 .6C 5.9 112- 1985 1986

~ CAPITAL EXPENDITURES 250- JJ Expenditures in 1986 were primarily for progress payments on the subway car and articulated light rail vehicle contracts and for the purchase of 75 buses. 200-

150-

Increase 100- 1986 1985 (Decrease) % • Revenue vehicle acquisition ($ millions) 120.1 129.8 (9.7) (7.5) 50- 0 Other capital projects ($ millions) 48.2 58.7 (10.5) (17.9) Total ($ millions) 168.3 188.5 (20 .2) (10.7) 0- 1985 1986

15 REVENUE

Increase (thousands of dollars) 1986 1985 (Decrease) %

Regular service 302,719 275,097 27,622 10.0 Fare grants 11,855 10.763 1,092 10.1 Regular service, including fare grants 314,574 285,860 28.714 10.0 Charters and special services 2,257 1,882 375 19.9 316,831 287.742 29,089 10.1 Rental income 7,138 6,251 887 14.2 Advertising 6,002 5,268 734 13.9 Other income 4,869 2,325 2,544 109.4 Total revenue 334,840 301,586 33,254 11 .0

REGULAR SERVICE, INCLUDING continued to provide grants that allow leases of property totalled $3,336,000, an FARE GRANTS senior citizens to travel at half fare, the increase of 9.5% from 1985. Parking lot Regular service, or "passenger" rev· blind and war amputees to travel free and, net revenues totalled $1,972 ,000, a enue, including fare grants from Metro beginning in 1985, eligible war veterans to 24.5% increase over 1985, primarily as a Toronto, amounted to $314,574,000 in use seniors' fares. The amounts of Metro result of a parking fee increase in most lots 1986. Fares were increased on January 2, grants in 1986 were: senior citizens­ from $1.25 to $1.50 on July 1, 1986. Other 1986, resulting in an overall increase in the $11.059,000; blind and war amputees­ rental income totalled $1,830,000. average fare of 6.8%. The adult ticket and $676,000; eligible war veterans­ ADVERTISING token fare was increased to 5 for $4.00 $120,000. Advertising revenue is obtained from (80.0~). and the adult cash fare rose to CHARTERS AND SPECIAL advertisements on the TTC's vehicles and $1.00 . The fare increase generated $22.9 SERVICES property. Advertising revenue increased million in additional revenue . Ridership Charter revenue totalled $1.478,000, significantly in 1986 as a result of greater grew to a new all-time high of 441.0 30 .0% higher than in 1985. This was sales volume achieved by the advertising million, which generated an additional $5.8 mainly because of increased charter busi· contractor. million in revenue. Additional riders hip was ness, resulting from an increase in the OTHER INCOME due to employment growth in areas with number of conventions and special events Major items include the one-time gain high transit accessibility, service improve· held in the Metro area, together with an on sale of Parkdale Garage ($2,130,000). ments and increased cross-boundary tran· increase in rates for most charter services. the recovery of administrative and other sit travel by non-Metro residents . The Special services revenue increased slightly, costs for construction projects and for most significant factor contributing to the to $779,000. work done for others ($858,000) and increase in ridership is the continued RENTAL INCOME dividends from Gray Coach Lines, Limited growth in the use of Metropass. Rental from station concessions and ($500,000). As in previous years, Metro Toronto

16 EXPENSES

Increase (thousands of dollars I 1986 1985 (Decrease) % Wages, salaries and other employee costs 349,400 325,486 23,914 7.3 Materials, services and supplies 50,304 43,794 6,510 14.9 Electric traction power 17,412 16,408 1,004 6.1 Automotive fuel, vehicle and other licences 22,299 22,378 (791 (0.41 Municipal taxes 4,642 4,174 468 11.2 Public liability costs 8,403 6,258 2,145 34.3 Depreciation and debenture interest 8,520 8,474 46 0.5 Total expenses 460 ..980 426,972 34,008 8.0

WAGES, SALARIES AND OTHER are also analysed on page 18. savings due to the sale of the Parkdale EMPLOYEE COSTS ELECTRIC TRACTION POWER Garage in 1985. Wage and salary costs increased to Electric vehicles operated 58.3 million PUBLIC LIABILITY COSTS $298,063,000, while the Commission's miles in 1986, up 2.3% over 1985. The cost Public liability costs consist of premi· share of pension contributions and other of electric traction power further urns for catastrophe insurance, payments employee benefit costs totalled a further increased in 1986, because of rate for self ·insured claims and an increase in $51 ,337,000. General wage increases increases that averaged 3.7% . the provision for unsettled claims. Fewer granted in 1985 and 1986 resulted in a AUTOMOTIVE FUEL, VEHICLE claims were paid in 1986 than in 1985; composite year·over·year increase of AND OTHER LICENCES however, the average value of claims paid 5.7%. Specifically, a 4.5% wage increase The TTC's bus fleet operated 60.7 increased significantly. In addition, the became effective on July 1, 1985, a 1.25% million miles in 1986, up 1.9% from 1985. provision for outstanding claims at Decem· increase was effective January 1, 1986, The price of diesel fuel decreased from ber 31, 1986, was increased by $3 million and a further 4.25% was effective July 1, 41.3C per litre in 1985 to 39.7C per litre in to allow for the much greater number and 1986. In addition, the TTC work·force 1986. value of claims outstanding at the year· increased by 1.2%, and employee benefit MUNICIPAL TAXES end. costs increased by 10.2% . Realty and business taxes are payable DEPRECIATION AND DEBENTURE An analysis of wage and salary costs by on all Commission properties, except those INTEREST function is shown on page 18. used for rapid transit purposes. The This expense relates to the Commis· MATERIALS, SERVICES AND increase in taxes is due to an average mill sion's share of capital debt issued to SUPPLIES rate increase of 6.2%, combined with finance the construction of subway lines This expense is the cost of materials, municipal taxes for the full year on the prior to 1968, and to the annual amortiza· services and supplies of items not shown Duncan Shops building, which opened in lion of the Commission's investment (net separately in the table above . These costs 1985. Offsetting these increases were of municipal and provincial subsidies) in its capital assets.

17 E X P E~ N S E S BV FUNCTION

Increase (thousands of dollars) 1986 1985 (Decrease) %

Wages, salaries and other employee costs Vehicle operation 197,090 184,576 12,514 6.8 Vehicle maintenance 75,730 70,752 4,978 7.0 Non·vehicle maintenance 41,388 38,704 2,684 6.9 General and administration 35,192 31,454 3,738 11.9 349.400 325,486 23,914 7.3

Materials, services and supplies Vehicle operation 1,671 1,549 122 7.9 Vehicle maintenance 22,596 18,703 3,893 20.8 Non-vehicle maintenance 16,126 13,685 2,441 17.8 General and administration 9,911 9,857 54 0.5 50,304 43,794 6,510 14.9

VEHICLE OPERATION carhouses, repair shops and administrative bill processing increased significantly as Approximately 50% of the operating facilities, as well as the track and wiring the volume of dollar bills handled increased work-force is involved in vehicle opera· along the subway and surface routes, from $27.2 million in 1985 to $43.2 million tions- operators, station collectors, occupies approximately 15% of the work· in 1986. inspectors, training staff and Transporta· force. The increase in labour costs is the tion Department management. Labour result of the general wage increase, addi· costs increased in 1986, mainly because of tional maintenance on the subway system the general wage adjustment and the and an increase in maintenance staff increased work-force required in connec· required for the new buildings opened in tion with the 2.0% increase in miles 1985 and 1986. Non-labour costs operated. increased primarily because of inflation, VEHICLE MAINTENANCE increases in major project costs, such as Servicing, maintaining and repairing the building renovations, and a full year's revenue fleet employs approximately 25% maintenance of the Scarborough RT line of the Commission 's work-force . Labour and new shop facilities. EXPENSES BY FUNCTION costs increased mainly as a result of the GENERAL AND ADMINISTRATION Total Expenses: $399,704,000 general wage adjustment, together with The general and administrative tunc· 0 Vehicle Operation additional maintenance work associated lions include the executive, finance, mar· $198,761 ,000 (49.7%) with re-wheeling the Canadian Light Rail keting and community relations, human D Vehicle Maintenance Vehicles (CLRVs) and with operating the resources, materials and procurement, $98,326,000 124.6%) Scarborough RT line for a full year. The planning, safety and security, legal and 0 Non-vehicle Maintenance increase in non-labour costs reflects gen· management services operations. These $57,514,000 (14.4%) eral inflation in material costs, additional activities account for approximately 10% • General and Administration maintenance because of the greater of the work-force . $45,103,000 (11.3%) mileage operated, and a full year's opera· Labour cost increases were mainly due lion of the Scarborough RT line, including to the general salary adjustment. In addi· additional costs associated with the lion staff increases were required primarily expiration of the warranty period on the in the areas of computer operations, ICTS vehicles. marketing and community relations, mate· NON-VEHICLE MAINTENANCE rials and procurement and fare processing . Maintaining the Commission's garages, The labour -intensive operations of dollar

18 CAPITAL EXPENDITURES

Increase (thousands of dollars) 1986 1985 (Decrease)

Revenue vehicle acquisition 120,093 129.789 (9,696) Other capital projects 48,206 58,663 (10.457) 168,299 188,452 (20,153)

Revenue Vehicle Acquisition Other Capital Projects

126 subway cars (progress payments) 59,967 New maintenance facilities 9,273 52 Articulated Light Rail North York Centre station 7,898 Vehicles (progress payments) 43,975 Surface and subway track 5,136 75 buses 12,864 Computer equipment 2,963 6 Intermediate Capacity Transit System Subway station modernization programme 2,855 vehicles (progress payments) 3,058 Other capital projects 20,081 30 Wheei-Trans vehicles (progress payments) 229 120,093 48,206

: These figures do not include Metro Toronto's direct expenditure for land purchased for subway and other projects, or Metro municipalities' costs for constructing transit shelters.

REVENUE VEHICLE ACQUISITION Trans service were completed in 1986. Computer equipment: 126 subway cars: These vehicles will partially replace the Expenditures in 1986 consisted of Further progress payments were made Mighty-Mite vehicles currently in service. upgrades to the central computer and towards the purchase of 26 additional and purchases of a scheduling computer and 100 replacement cars. OTHER CAPITAL PROJECTS several personal computers. 52 ALRVs: New maintenance facilities: Subway station modernization Further progress payments were made Expenditures in 1986 were primarily for programme: towards the purchase of 52 ALRVs. These the construction of the new fare-process­ Work done in 1986 was at the Eglinton, vehicles will replace most of the remaining ing building, which opened in 1986. St. Clair, Summerhill and Wellesley fleet of PCC cars. North York Centre station: stations. 75 buses: Work continued on the new North York Other capital projects: Seventy-five 40-foot buses were pur­ Centre station, which is scheduled to open These include subway ventilation and chased in 1986: 26 to replace retired in June 1987. asbestos removal projects, garage vehicles and 49 for service expansion. Surface and subway track: improvements, new fare boxes, initial 6 ICTS vehicles: Surface track projects are undertaken costs for a new bus garage, studies related The purchase of these vehicles is in conjunction with Metro Toronto and the to proposed new transit lines, shop and required to meet ridership growth on the City's programme for repaving the streets. garage equipment, automotive service Scarborough RT line. Subway track projects in 1986 consisted vehicles, office furniture and equipment. 30 Wheei-Trans vehicles: primarily of reinsulating the negative rail the TIMELINE project and other capital Progress payments for the purchase of on the Bloor -Oanforth subway and track acquisitions . 30 Orion 11 vehicles for use in the Wheel - replacement at the .

19 is FINANCING

Increase (thousands of dollars) 1986 1985 (Decrease) lations result in a 1986 cost-sharing as follows : Operating Expenses By the Commission 460,980 426,972 34,008 TTC revenues 69_5% By Metro and Metro municipalities 23,580 21,006 2,574 Provincial subsidy 15.9% 484,560 447,978 36,582 Metro and Metro municipalities 14.6% Financed from CAPITAL EXPENDITURES Commission revenue 334,840 301,586 33,254 Capital expenditures totalled Metro and Metro municipalities 78,120 76,692 1,428 $168,299,000, including $140,031 ,000 Provincial subsidy *71,600 *69,700 *1 ,900 for new rapid transit construction and 484,560 447,978 36,582 major vehicle purchases included in the Capital Expenditures Metro Capital Works Programme and By the Commission 168,299 188,452 (20,153) $28,268,000 for the purchase of buses By Metro and Metro municipalities 2,020 2,712 (692) and for the replacement and renovation of 170,319 191,164 (20,845) surface and general facilities included in Financed from the Commission's capital budgets. Provincial subsidy * 123,700 * 145,400 *(21,700) Metro assumes the full cost of the Metro and Metro municipalities 35,667 35,207 460 projects included in the Capital Works Commission 10,952 10,557 395 Programme, including land purchased 170,319 191,164 (20,845) directly by Metro and not recorded on the *Subject to provincial audit and approval. Commission's books ($1,781,000). Metro receives a 75% provincial subsidy for substantially all of these costs. The OPERATING EXPENSES the target of 72.5% for Toronto, up to a province has also agreed to pay the Financing is based on a fair-share maximum of 15.47%. additional 25% of the extra costs required agreement under which the Commission The province also pays special operat­ to construct the Scarborough RT line using aims to provide approximately 68% of ing subsidies to municipalities with new ICTS rather than CLRV technology. expenses (as defined for provincial subsidy major transit facilities and for the addi· Capital budget expenditures are purposes) from its revenues _ The Munici­ tional operating costs of the Scarborough assumed by the Commission, with the pality of Metropolitan Toronto and the RT line that resulted from use of the ICTS exception of costs for transit shelters, Province of Ontario assume the remaining system instead of the originally planned which are paid for by the Metro municipali­ expenses on an approximately equal basis . streetcar (LRT) system . ties . The province pays a 75% provincial In practice, the 68% revenue /cost target is In 1986, the operating subsidy requ ire­ subsidy on most projects but does not arrived at through the Commission's bud­ ment assumed by Metro Toronto amounted subsidize automotive service vehicles, rev­ get-setting procedures, which forecast to $126,140,000 . Metro and the Metro enue collection equipment, office furniture numbers of passengers, service to be municipalities incurred further costs and equipment, and certain other minor operated and required fare increases . totalling $23,580,000. These were pri­ items. Actual financial results may result in these marily for debenture debt payments, senior Provincial subsidies on capital expendi­ percentages fluctuating slightly above and citizens' fare subsidy and maintenance of tures in 1986 amounted to $123,700,000 below the targets from year to year. transit shelters_ The provincial contribu­ (subject to provincial audit), including The current provincial subsidy formula tion amounted to $71,600,000 (subject to $2,700,000 for the additional 25% is based on a sliding scale, which provides provincial audit), and Metro's residual cost subsidy for the Scarborough RT line. for a basic subsidy of 13.75% of eligible was $78,120,000. The Commission's contribution was expenses plus 25% of the shortfall Adjustments of the figures in the table $10,952,000, and the remaining between the actual revenue /cost ratio and in accordance with provincial subsidy regu- $35,667,000 was financed by Metro and the Metro municipalities.

20 STATEMENT DF REVENUE AND EXPENSES

Year ended December J1 (in thousands) 1986 1985 Revenue from operations: Passenger services $316,831 $287.742 Rental of land, aif rights , buildings, subway concessions and equipment 7,138 6.251 Rental af advertising space 6.002 5.268 Dividend from Gray Coach Lines , Limited 500 500 Miscellaneous 4,369 1.825 Total revenue 334.840 301,586 Operating subsidy (Note 21 126, 140 125,386 Total revenue and operating subsidy $460.980 $426.972 Expenses: Wages. salaries and other employee costs $349,400 S325 ,4 86 Materials, services and supplies other than the items shown below 50.304 43.794 Electric traction power 17,412 16,408 Automotive fuel. including federal and provincial taxes 21.709 21 ,818

Vehicle and other ~cences 590 560 Municipal taxes 4.642 4. 174 Public liability costs 8.403 6.258 Depreciation 8,103 7,938 Debenture interest 417 536 Total expenses $460.980 $426.972

AUDITORS' REPORT Price 11ilterhouse• April 14. 1987 Tu the Chairman and Member.~ oft he Toronto Transil Comnu~~s ion : We ilrll'e examined !he balance shee1of t he Toronto Ti·ansil Commission as a/ Decem her 31. 1986, and the slatemems ofret ·enue and expenses and changes in financial posilion for !he year !lien ended. Our examin01ion M'a\· mode in accordance '''ilh generally accep1erl audiLing s/andar£11·. and accordingly included such lesls and other procedures as H'e considered necessary in !he circwmlances. In our opinion. lliesejinancial sla/emems presenl f airly 1h e financial posiLion of1 h e Commis~ ion as at December 31. 1986, and the results of it.\ operaliom and !he changes in iLsjinancial position f or !he year I hen ended in accordance with generally accep1ed accouming principles applied on a basis consiste n! with /ha/ of! he preceding ye(//: _·;.:~ -

21 BALANCE SHEET

December 31 (in thousands) 1986 1985 ASS ETS Current assets: Cash 5,184 650 Accounts receivaiJie- The Municipality of Metropolitan Toronto 80,128 65,432 Gray Coach Lines, Limited- current account 3.743 3,841 Other 6.424 3,469 Materials and suppfies 21 .200 16,875 Working funds and prepaid expenses 2.663 2,923 119,342 93,190 Investment in capital stock of Gray Coach Lines. limited (Note 3) 1.000 1,000 Capital assets: Land , buildings , subway, power distribution system, trackw01k, rolling stock , buses and other equipment 1,480.735 1,440,960 Less : Capital contributions (1,249.288) (1 ,214,313 ) 231.447 226,647 Less : Accumulated depreciation (152,497) (150,546) 78,950 76,101 Under construction and not yet in service 256.246 133,895 Less : Capital contributions (256,246) 1133,895)

Net capital assets 78,950 76,101 $ 199,292 170,291 LIARfLITI ES Current liabilities: Accounts payable, accrued liabilities and cheques in transit $ 118,971 90 ,283 Current portion of capital debt (Note 41 1.§25 1.446 120.496 91.729 Provision for: Tickets and tokens held by the public 11,750 11,750 Public fiability 8,000 5,000 19.750 16.750 long·term portion of capital debt due to the Municipality of Metropolitan Toronto (Note 41 13,861 16,627

EQUITY Equity acquired from Toronto Transportation Commission on January 1, 1954: Earnings retained and invested in improvement and expansion of the system by Toronto Transportation Commission 24.804 24,804 Earnings retained and invested in the system by Toronto Transit Commission (unchanged from 19721 20.381 20,381 45,185 45,185 $199.292 $170,291

22 STATEMENT OF CHANGES

IN FINANCIAL POSITION

Year ended December 31 lin thousands) 1986 1985 Cash 1111111 in operatiolls: Net operating costs $126.140 $125.386 Depreciation 18,1031 17.9381 Increase in provisions 13.00(}) 12.1001 115.037 115.348

Decrease !increase) resulting from changes in ­ Accounts receivable 17.553 20.022 Materials and supplies 4,325 445 Working funds and prepaid expenses 12601 136 Accounts payable. accrued liabifities and cheques in transit 128.6881 119.8301 107.967 116.121

Net cash used in the acquisition of capital assets 168.299 188.452

Cash received from !used in) financing activities: Operating subsidy 126.140 125.386 Capital contributions 157,347 177,895 Debenture debt repayment 12.687) 12 .6501 280.800 300.631

Increase !decrease) in cash 4,534 13.9421 Cash, beginning of year 650 4,592 Cash, end of year 5,184 650

23 N 0 T E S TO F NANC A L STATEMENTS

DECEMBER 3 1 1 e a a

I. SIGNtFICANT ACCOUNTING projects where the Municipality of December 31 , 1986, the present value of POLICIES: Metropolitan Toronto has complete finan· awards outstanding is approximately $7 .3 The Toronto Transit Commission was cial responsib~ity. These holdbacks are not million, which amount has not been recog · established on January 1. 1954, to serve included in the financial statements as nized in the financial statements . the lransportation needs of the municipali· they do not enter into the undemoted 2. OPERATING SU USmY: ties comprising the Municipality of capital contribution calculation until actu · By agreement with the Municipality of Metropolitan Torunto . The new entity ally paid by the Commission . At December Metropolitan Toronto, the Commission assumed all the assets and liabilities 31, 1986, these holdbacks amounted to establishes its fares each year at the level of the former Toronto Transportation $1.180 ,000 (1985 - $766.0001. Land pur· required to produce total budgeted revenue Commission . chased directly by the Municipality, mainly from operations equal to 68% of total The accounting policies followed in the for rapid transit purposes. is not recorded operating expenses las defined for provin· preparation of the financial statements for on the Commission's books. cial subsidy purposes!. The Municipality the Toronto Transit Commission are in The current bases for capital contribu· undertakes in its budget to provide an accordance with generally accepted tions are as follows : operating subsidy equal to the remaining accounting principles and have been con· il For additions and improvements to expenses. sistently applied . The significant account · the subway and light rail systems and The Municipality in turn obtains subsi · ing policies are as follows: equipment and for certain other projects , dies from the Province of Ontario related to the Municipality makes a capital contribu· a. Revenue Recognition eligible transit operating expenses , rev · tion equal to the total cost and recovers il Passenger revenue is recognized when enueicost relationships and special subsi· 75% of this amount from the Province . tickets and tokens are used. Revenue from dies for major new transit facilities on iil For most of its other capital asset monthly passes is recognized in the period exclusive rights of way. additions. including buses , the Commission in which the passes are valid. Under these arrangements, if actual receives from the Province a 75 % capital iil All other revenue, with the exception of revenue and expenses for the year are contribution that is paid through the dividends from an unconsolidated sub· equal to the budgeted figures. the operat· Municipality. sidiary (Gray Coach lines , Limited!, is ing subsidy is shared approximately equally iii) For the Scarborough RT Line , the recorded on an accrual basis. by the Municipality and the Province. Municipality paid the full cost and recov · The actual funding of transit operating b. Materials and Supplies ered 87 % of this amount from the Province expenses Ias defined for provincial suhsidy Inventories of materials and supplies are under a special funding agreement. This purposes! is expected to be as follows: valued at average cost. Materials and sup · agreement provided that the Province plies are expensed or capitalized when issued . would pay its regular 75% subsidy on the 1986 1985 equivalent cost of a conventional streetcar c. Investment in Subsidiary By the Commission 69.5% 68 .1% line and fully pay the additional costs The investment in the capital stock of Gray By the Municipality 14.6% 15.7% resulting from the decision to construct an Coach lines. Limited is carried at cost. By the Province of Intermediate Capacity Transit System The accounts of the subsidiary are not Ontario 15.9% 16.2% consolidated with those of the Commission (ICTS!Iine . because consolidation is not considered to e. Depreciation J. GHA\'COACJ-1 LINES. LIMIHD: be the more informative presentation in the The provision for depreciation on capital Gray Coach Lines . Limited, a wholly-owned circumstances. The earnings of the Corn· assets is computed on the straight-line subsidiary of the Toronto Transit Commis · pany after payment of dividends to the method at rates based on the estimated sion, operates interurban coach services Commission are retained to maintain and average life of each asset group . Deprecia· and , through its subsidiary, Gray Coach improve the services and facilities for the tion is charged only on that portion of the Travel Inc., a travel business. Its consoli· benefit of the population it serves and are total cost of capital assets borne by the dated financial statements are published not likely to accrue to the Commission. Commission. separately. Dividends declared by Gray Coach The Company's lares and routes are Lines, Limited are recorded as revenue by f. Taxes regulated by the Province of Ontario and a the Commission when received. The Commission is not subject to income significant part of the Company 's opera· taxes and receives exemption from certain d. Capital Assets and Capital tions have been carried out under an property taxes. Contributions agreement with the Tor onto Area Transit The Commission constructs or purchases g. Workers' Compensation Operating Authority as part of the " GO its capital assets and receives capital The Commission, as a Schedule 11 employer Transit" commuter system. During 1984, it contributions as described below. Capital under the Workers' Compensation Act , was agreed that a phase -out of the assets are recorded at gross cost in the follows a policy of self insurance for all its Company's operation of " GO Transit'" financial statements and the capital contri· employees including those assigned to routes would occur over the five -year butions received are recorded as a deduc· Gray Coach lines, Limited . Payments made period ending in 1989. tion from this cost. The Commission does to employees for accidents suffered while The Company's operations are summa · not accrue for construction holdbacks on employed are expensed when made . As at rized as follows:

24 Gray Coach Li11es. Limited (inclwutg Gray Coach Travel Inc.! itnt~OUSdOOS) 191lfi 1985 Year entl!td Uerernber 31 less Currellt pmtreo 1,525 1.446 lln t housmds 1 19U 1385 13.213 14.73e Revenue $46.886 $47.047 Srnk 1f19 food clttlentur es - Ex Jl9fl!\llS. tttclutlmy Gntano 4 ,";, dul!ll986 ?.599 lflCome tax~~& 43.831 45.976 5"1· due 1993 2.105 2.105 ~t earrnngs lOt the vem $ 3,055 $ 1.071 6'm tlut 1996 8.69D 8.69D Tile Conll!llln{s tlalance shlllllli MllllfTl.!Hlttd as follows. 6'\ llue 199/ 3,0!15 3.De!i hn tl\rlusandsl 1!1U 1985 7~ .. dul!l1997 3.653 3.653

[}ecemliH!f 31 17.533 20.132

Current assets $ 6.647 $ /.195 less Smkmg IUlrd rnv1'~tments 16.8115 18.243 Teum 111111ntmems helU flit! 1889 repfat:ement of ltlfmulals dnd &48 puiJm: hahtltty SPII!ernents 11.510 6.500 $13.1161 $115.627 Other assets 145 S!!ftai ootlf!lr,tute IJiiVIIll!llliS teljurftld m Peach of the next !rve yt!IIS Cap~tal dSsets. at cnst less ilfe approxlfl1fttlllv Sl.696.000 Scheduled >lflikWlg lllllt! p.~yments ace umula 1ed depr tWit ton 17.!167 18.558 Will be futllled nv exress tarrlllliJS of the slllkif19 fund $31.25!1 Smluog futld mwstfflllnts ronsrst of 1981! 1985 U \811.11 lP• \ \ll ~ll.\RHtOU»:R'~ U)IIT\ ''~~ Th~ accunltlla led anrn.al levres p.!fd Cunent klilbthtles $ 11.201 $ 9.151 bv tlle ComnnsS

1 4. ( 0\41'-\IBIIH 11\1.\\Ct:'l: 5 , '• lrlial im t alment dui!! 199 5 9.409 10.211 Certam 198':1 fty~KI!IS have been restated to refll!llt lmmal charlqi!IS 14.738 16.184 made to the statements tn 1986.

25 10-VEAR FINANCIAL AND OPERATING

I

1977 1978 1979

PASSF.NGF.RSIOP~~RATING RUF.NUF: t Passengers !Millions) 348.7 337 .6 346.2 Basic Adult Ticket Fare lat December 311 40.0C 42.9C 50.0C Total Operating Revenue ($ MiUionsl 137 .7 146.0 165.9 Operating Revenue per Mile 145.9C 147 .9C 167 .6C Operating Revenue per Passenger 39.5C 43.2C 47.9C OPF.RATIONSIF.XP.:Ns•:s Miles Operated, Including Charters and Special Services !Millions) Bus 46.9 46.9 48 .1 Subway Car 33.8 38.2 37.7 Street car 9.5 9.4 9.1 Trolley Coach 4.2 4.2 4.1 Scarborough RT - - - 94.4 98.7 99.0

Average Number of Employees (Including Gray Coach lines. limited) 8,525 8,632 8.703 Average Hourly Wages and Benefits per Driver $9.62 $10.27 $10.81 Total Expenses 1$ MiUionsl 180.0 196.4 211.6 Expense per Mile 190.7C 199.0C 213.7C Expense per Passenger 51.6C 5B .2C 61.1 c OI'~:RATING SUBSIDY Operating Subsidy i$ MiHionsl 42.3 50.4 45.7 Operating Subsidy per Mile 44.8C 51.1C 46.2C Operating Subsidy per Passenger 12 .1C 14.9C 13.2C RF.vt:NUEICOST RATIO 71.6% 69.0% 72.9 % CAPITAL ASSETS Investment in Capital Assets thefore depreciation and eentrillutionsl at December 311$ Millions) Rapid Transit 726.8 786.8 827 .3 Surface 125.0 126.6 134.5 851.8 913.4 961 .8 Metro and Provincial Contributions 637.6 701.0 748 .2 TTC Investment !before depreciation) 214 .2 212.4 213.6

Vehicle Fleet !Owned and Leased) Buses 1,235 1.219 1,231 Subway Cars 534 590 618 TroHey Coaches 151 151 151 Streetcars 354 344 342 ClRVs - - 17 ICTS Vehicles - - - WheeHrans Buses - - - 2,274 2,304 2,359 : 26 S TATISTICS

% Increase !Decrease) 1980 1981 1982 1983 1984 1985 1986 1977- 1986

366 4 392 0 401 2 405 7 427 7 432 2 44 1 0 26 5 50 .0C 57 .1c 62.5C 66.7C 70 .0C 73 .8C 80.0C 100.0 183.6 215.0 240 .9 259.4 283 .2 301 .6 334.8 143.1 181.1 c 199.3C 212.4C 228.5C 247 .3C 260 .2C 283.2C 94 .1 50 .1c 54 .9C 60 .0C 63 .9C 66.2C 69.8C 75.9C 92 .2

49.3 52 .1 56 .8 57 .2 58 .2 59 .0 60.0 27 .9 38.6 42 .6 43 .2 43 .1 43 .3 43 .3 44.1 30.5 9.4 9.3 9.4 9.3 9.2 9.1 9.0 15 .31 4.1 3.9 4.0 3.9 3.8 3.6 3.5 116.7) - - - - - 0.9 1.6 101.4 107.9 113.4 113.5 114.5 115.9 118.2 25.2

8,689 8,906 9,200 9,414 9,614 9,772 9,759 14.5 s11.6 7 $14 .13 $15 .4 9 $16 .50 $17.43 $18.40 $19.49 102.6 236 .8 284.4 333 .8 362.8 393.0 427 .0 461.0 156.1 233 .5C 263 .6C 294 .3C 319.6C 343.2C 368.4C 390.0C 104.5 64.6C 72 .6C 83 .2C 89.4C 91.9C 98 .8C 104.5C 102.5

53 .2 69.4 92 .9 103.4 109.8 125.4 126.2 198.3 52.4C 64 .3C 81.9C 91.1 c 95 .9C 108.2C 106.8 138.4 14.5C 17.7C 23 .2C 25 .5C 25.7C 29 .0C 28.6 136.4 71.3 % 71.1 % 68 .6% 68 .5% 69.3% 68 .1% 69.5%

836.3 841 .6 885.4 971.9 1,060.0 1.149.2 1,234.9 69 .9 174 .0 225.5 262.0 307.9 330.8 425.6 502. 1 301.7 1,010 .3 1,067.1 1,147.4 1,279.8 1,390 .8 1,574 .8 1.737.0 103.9 796.4 849.3 927.2 1.057 6 1.170.9 1,348.2 1,505.5 136.1 l 213.9 217 .8 220.2 222.2 219 .9 226.6 231.5 8.1

1,262 1,403 1,556 1,561 1,465 1,512 1,561 26.4 632 632 632 632 632 631 631 18.2 151 151 151 151 150 150 150 (0.7) 311 258 178 175 169 124 124 165.0) 89 188 196 196 196 196 196 - - - - - 24 28 - - - - - 19 30 i 2,445 2.632 2,713 2,715 2,612 2,656 2.720 19.6

27 TTC MANAGEMENT DIRECTORY

FOR FURTHER INFORMATION. OFFICERS AND Dave A. Cowan Dr. Joel Miller PLEASE CONTACT : SENIOR OFFICIALS Manager Manager Equipment Project Administration TTC Public Affairs Office Alfred H. Savage Chief General Manager Engineering and 1900 Yonge Street William G. Frost Construction Toronto , Ontario Norman E. Balfour, QC Manager Canada M4S 1Z2 Personnel EdShaw Telephone : (416) 393 -3900 General Counsel Manager Telex : 06524670 Lloyd G. Berney AI Gallo Labour Relations General Manager Manager Operations Marketing and Community Dr. David Stephen Relations Medical Director Gordon M. Break General Manager Ron L. Gooding Howard M. Sweezie Human Resources Manager Manager Internal Audit Area Land Development Arnold S. Dube Finance General Manager David J. Taylor Administration Terry Hancock Manager Manager C!S J. Herb Jobb Payroll, Budgets and Fare General Manager Processing Area Robert M. Topp Finance Manager Finance Operational Planning Donald J. Morton Alan K. Hewson General Manager Manager Gary M. Webster Engineering and Wheel- Trans Manager Construction Materials and Procurement Graham Jones David C. Phillips Manager Paul A. Wenning General Secretary Financial Control Area Manager Finance Safety and Security Dr. Juri Pill General Manager R. Ian Kingston Wm. D. Wood Planning Manager Manager Plant Special Projects and DEPARTMENT MANAGERS Treasury A rea Finance Gerry L. A. Brolley Kenneth G. Knight Manager Manager SUBSIDIARY COMPANIES Service Planning Construction Engineering and Gray Coach Lines Ltd. Dennis R. Callan Construction William L. Verrier Manager President and Chief Engineering Nick Lash Executive Officer Engineering and Manager Construction Transportation Toronto Transit Consultants Ltd. John D. Cannell Douglas W. Mair Executive Administrator Ian C. Smith Manager President Pension Fund Society Operations

Alien J. Chocorlan Nelson R. Melnyck Year ending December 31 , 1986 Manager Manager Design: Public Good Management Services Corporate Planning Photography: Russell Monk

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